Updated November 8, 2011

This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.

As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.

Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in

Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.

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Replies to This Discussion

Attached is the plat showing the drilling unit for the Buell Well.
Attachments:

Thanks Dan .

 

In looking at the plat that Dan attached, do I read correctly that the "drilling unit" is only 177.4 total acres?  That seems small for a horizontal well. Many of the lease offers mention 600 or 640 acre drilling units. I realize this one only has one lateral but it seems it would draw gas from a larger area than the 177.4 acres that are designated as "Unit Area" on the plat.

 

You read it right Finnbear, what they like in a 640 is the ability to skid over and do 4 wells from one location. Perhaps because this well was an experiment they kept it small.

Finnbear,

Each lateral will draw gas 300 ft. from each side of the lateral. Actually 300 ft. radius of the lateral, assuming you think in 3D.

Hi Dan Have you had a chance to get a copy of the drilling unit for the Sportsman Club well. Thanks Butch

I haven't seen the drilling unit for the Sportsmans Club well.  It is not posted on the online database yet.  It wouldn't be much to see anyway at this point - probably just a 40 acre square surrounding the well pad. They pulled their original permit and resubmitted a revised permit for this well, and that was approved on June 1st.  As of this moment it is classified as a vertical stratographic test well that is going down to just past the Marcellus.  Once they get underweigh they will probably resumbit for a horizontal well, and then they will will provide a plat map with the direction of the lateral and the properties involved.
Ok Dan  Thanks  I was on ODNR's Oil and Gas Well Search and the horizontal line is on it. It looks like it will be under mostly state land, but it might be stopping under some private land.

That line shown on the ODNR gas map could be how it will run, but that horizontal permit is not in effect anymore. In May they had permits approved for an initial strat test, and then a resubmitted horizontal permit.  But then they told ODNR to scrap those because they wanted to modify the permit.  On June 1 they got their revised permit approved, which is only a vertical strat test well at this time.  So they shouldn't be showing that horizontal lateral anymore on the map, although it will probably end up being there again when/if they revise the permit again to change to a horizontal production well.

 

It does go under state and private land, but either way I'm guessing that North American Coal Royalty Company owns all the minerals rights under the whole thing like they do with the Buell Well.

 

I have heard rumors that they are going to take the lateral northwest instead of southeast, or that they are going to develop Marcellus instead of Utica, but we'll have to wait for the revised permit to know for sure.

Dan,

 

where did you get this PDF?.....i'm looking for a plat for another permitted well that is currently under construction.

 

thanks

What permit number? Where is the well located?
carrol county, lee twp, sec 24, permit 22090 or 2090.......says utica vertical now.....they are setting it up and i have a buddy who's land is VERY close.

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